Housing: Accessibility

Lord Bourne of Aberystwyth Excerpts

Monday 22nd July 2019 Lords Chamber

[Baroness Campbell of Surbiton]

To ask Her Majesty’s Government what assessment they have made of the case for mandating M4(2) of Schedule 1 to the Building Regulations 2010 to ensure that future houses are accessible and adaptable.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, on 25 June the Prime Minister announced that we will consult on mandating higher accessibility standards for new housing. New planning guidance was published on 26 June to support councils to put clear policies in place for addressing the housing needs of older and disabled people.

[Baroness Campbell of Surbiton (CB)]

My Lords, I thank the Minister for his reply, but he will be aware of alarming research published last month by the housing association Habinteg, which revealed that the inaccessible housing crisis for disabled people is rising quite rapidly, largely because only 1% of new homes being built will be suitable for wheelchair users to live in. This is unacceptable. I am aware that the Government are going to consult on this issue, but we simply cannot wait another year or more for tangible action. Will the Minister meet me to discuss this latest research with Habinteg and to talk about what can be done now and in the very short term to alleviate the crisis?

[Lord Bourne of Aberystwyth]

My Lords, first, I thank the noble Baroness for all the exemplary work she does in campaigning on this issue. I am very happy to meet her to discuss this further. She will know that we have brought forward consultation on M4(2) ahead of the consultation on the wider Part M in regard to accessibility, precisely because this is so important. We are looking at it ahead of other issues concerned with Part M and value the work that Habinteg does as a valued partner on this.

[Lord Shipley (LD)]

My Lords, I remind the House of my registered interests. I also remind the Minister that 45 of the 322 local plans still refer to older accessible housing standards, putting planning requirements at risk of challenge. Given the importance of this issue, will the Minister urge local planning authorities to update their plans to ensure that they are compliant with the updated post-October 2015 access standards very soon?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord is quite right to address that issue. He will understand that the Statement by the Prime Minister on 25 June dealt specifically with the planning aspects of this and the guidance in relation to accessibility following the Neighbourhood Planning Act, reminding local authorities of the responsibility and providing this guidance to ensure that they comply with the law.

[Lord Dubs (Lab)]

My Lords, does the Minister agree that it is a matter not just of new houses but of existing houses that are going through a process of extensive refurbishment? Could it also be made mandatory that, in those instances, adequate attention is paid to access for disabled people?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord is quite right on that point. Obviously, wherever planning is required, it will have to be compliant with the statement and guidance that the Prime Minister activated on 26 June. He also raises the further problem of potential retrofitting at some stage for homes that do not yet comply with the new standard, which applies only to new builds.

[Lord Porter of Spalding (Con)]

My Lords, I remind those on the Benches opposite that in 30 years’ time most properties will still be the ones we are currently living in and not new builds. Does the Minister think it is time that the Treasury and whoever moves in this Thursday with his boxes look at taking the VAT off retrospectively fitting homes to make them fit for life?

[Lord Bourne of Aberystwyth]

My Lords, I thank my noble friend for that question. I had better be very careful about advice to the Treasury; when I was getting a briefing on this issue, my officials told me I could undertake to meet a particular Member, or at least my successor could. I asked them what they had heard; they said they had not heard anything, and I am taking that at face value. The noble Lord is right that there is a continuing issue that will need to be addressed. There is a range of properties that will not meet these new standards, which apply just to M1, but that, as it relates to funding, is a matter for the Treasury.

[Baroness Greengross (CB)]

My Lords, as a long-term supporter of lifetime homes, I first visited Rowntree’s New Earswick estate in York 25 years ago. There is some good news, because all its homes have been built as lifetime homes since then. With our rising longevity and ageing population, it is common sense that new homes should be built to be more accessible and adaptable, but that is not happening as much as it should. The report that only 32% of local authorities comply with this is evidence of that. The All-Party Group for Ageing and Older People, which I co-chair, published a report this month on how to get more accessible and decent housing for older people. I suggest that the Minister treats this as a priority and follows the report’s recommendations.

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Baroness: all that she does in this area is very much noted. I will certainly look at the report. Obviously, this is an issue that concerns all of us. It is worth saying that this is not just about disabled people, important though that issue is. It is about all of us as we age; hence its importance.

[Baroness Neville-Rolfe (Con)]

My noble friend will know that I am very keen on good models of behaviour and codes of practice. Is it possible for the Government or the universities to construct model homes that show developers, including small developers, how they can build accessible, safe and attractive homes—and lead the way in areas such as energy conservation, and therefore reduce people’s bills?

[Lord Bourne of Aberystwyth]

My Lords, I thank my noble friend. It is indeed possible, and modelling is being produced for us on a range of issues. It is important, as my noble friend said, that we look at that in terms of energy conservation and ensuring that we have lifetime standard homes and improved accessibility. These things are happening.

[Lord Best (CB)]

My Lords, I take this opportunity to thank the outgoing Prime Minister for a number of important reversals of unwise policies and the introduction of some much better policies, including taking the cap off local authorities’ borrowing to build new council housing and find more money for social housing. However, does the Minister agree that we have taken a step backwards in relation to accessibility and adaptability in allowing what are called permitted development rights for developers to produce incredibly small—indeed, even windowless—flats in conversions of existing buildings? Can we not get on top of that as well?

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Lord for all that he does and for his compliment to the Prime Minister on the important action on accessibility and planning in this area. I agree with him: he is absolutely right in his point about permitted development and possible loopholes. I am very happy to meet the noble Lord to discuss that further.

Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2019

Lord Bourne of Aberystwyth Excerpts

Wednesday 17th July 2019 Lords Chamber

Moved by

[Lord Young of Cookham]

That the draft Regulations laid before the House on 10 June be approved. Considered in Grand Committee on 15 July.

Motion agreed.

Devolution: English Cities

Lord Bourne of Aberystwyth Excerpts

Wednesday 17th July 2019 Grand Committee

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I thank noble Lords immensely for what has been an excellent debate. Most importantly, I thank my noble friend Lord Heseltine for bringing this forward and for a thought-provoking report with excellent ideas—making this a full house of compliments from every single speaker, which is a rare event in any debate—and for a first-class introduction to this debate.

I do not necessarily always agree with the noble Lord, Lord Adonis, but I do on the point about my noble friend’s lasting contribution to British life and the impact he has made. It is singularly rare for somebody to make the sort of impact across the board that he has made in British life, both at the Board of Trade and in the massive impact he has made on regional policy, particularly during his time in Liverpool. I had the privilege of being in Liverpool about three weeks ago, in Berry Street in Toxteth—it is not necessarily an area where people would always vote Conservative, but my noble friend is held in massive affection there, as he is throughout that great city.

As the noble Lord, Lord Kennedy, just said, his contribution to the Docklands area of London is immense. In Wales, I remember the opening of the National Botanic Garden in Llanarthney, which my noble friend did so much to help with. He was there with Lady Heseltine on that occasion. In terms of lasting contributions, the same is true in Wales.

Turning to the debate, I will make some general points and then try to go through and pick up on the contributions made by noble Lords. I should say in advance that I will make sure that a record of this debate is sent to all relevant government departments, because there is a great danger of silo thinking here. This is not just about the Ministry of Housing, Communities and Local Government. Probably every single government department needs to see this debate, not least the Treasury. If I miss any points in replying to the debate or run out of time I will make sure that all the points that have been raised are answered in correspondence.

There have clearly been differences over some issues in the excellent contributions—whether people are in favour of having a department of the regions or of having regional offices. There has not necessarily been uniformity on that issue. Where there has been complete agreement is that this is unfinished business in England. I happen to think that responsibility should lie with a metro mayor; not everybody does, but everybody accepts that there has to be somebody there. There has to be accountability for this to move forward. I believe strongly in having someone at the helm, such as Andy Burnham. He is politically different from me, but I do not think one could argue that he has not made a good fist of carrying things forward for Manchester. He is there at the helm, and that is important. The same is true of Andy Street in the West Midlands. I happen to believe that that is important, and so do the Government.

There is also the importance of localism, trusting people locally with things that should be decided locally. As I go around the country—this morning I was in Oakham and then Peterborough; as I have said, I have been in Liverpool, Leeds, Bradford, Manchester and Cornwall within the last month—what consistently comes across is that people want that sense of belonging to something and being able to help decide things locally. The most responsive way of doing that in most cases—clearly some decisions have to be made at a different level to the most local—is having people doing it locally. That sense of localism is important.

I also believe that we cannot go for a rigid blueprint. We have heard very different stories from different communities, partly because of their size and partly because of the nature of where they are in the country. A town of 50,000 people just outside London is very different to a town of 50,000 people in Cumbria or Northumberland; their needs will be very different.

We are at a pivotal point for the country, with a new Prime Minister and a new Government, and clearly there are decisions to be made—the in-tray will be substantial. I agree with a sentiment that has come across that because of Brexit, whatever view one takes of it, our eyes have been taken off the ball as a country, and probably as a Government, on all sorts of decisions that need resolution. Again, there is a very real sense of that up and down the country when one visits communities, whether people are for remain or for Brexit. There are things that they say the Government and Parliament should be getting on with. There is a sense of alienation—that might be too strong a word, but there is certainly a sense that, as a Parliament, we are perhaps losing the plot. This is something that a new Government must grapple with.

I will turn to individual contributions and once again thank noble Lords for a very wide-ranging debate. The noble Lord, Lord Tyler, spoke of Cornwall, with which he has a close connection and expertise. As he well knows, we have a devolution deal in place for Cornwall. It is the one area in England where we have a devolution deal where there is not a metro mayor. I agree with the noble Lord that there are issues relating to Cornwall that are very different from other parts of the country—I had better not say other parts of England because one thing that much of Cornwall is united on is that it is not part of England. There are issues of language and culture; I was down there last week and understand very well their importance. It is very different from metropolitan Britain, and we must not forget those important distinctions.

The noble Lord, Lord Beecham, reminded us quite rightly that this is not just about the money; it certainly is about the money, but that is not the only point of regional policy. I very much agree with that and the point he made about levering in private sector funding—a point also made by the right reverend Prelate the Bishop of Newcastle. I also agree with the noble Lord on Richard III, but that is perhaps by the way; we can discuss that at leisure at some other time.

The noble Lord, Lord Turnbull, spoke of nostalgia and welcomed by and large the report and the sense of direction from it. He had some doubt about a department for the regions but agreed with the main thrust of what my noble friend Lord Heseltine says in his report.

My noble friend Lord Hodgson spoke with great authority from different perspectives—from the committee perspective, from being MP for Walsall North and from his commercial experience. That was extremely useful. He referred again to the need to belong and the sense of alienation, which I think was referred to as well by the noble Lord, Lord Wallace of Saltaire. There is a great danger of alienation, not just from Brussels. Perhaps alienation is too strong a word, but there is a turning away from London and wanting things to be done more locally and pride in the local area. That is something we need to be aware of, as well as the sense of two nations. We need to be wary, as we always have been, as a party and as a country, of the danger of the two nations to which Disraeli referred in Sybil; we do not want that in any shape or form.

The noble Baroness, Lady Warwick, whom I thank very much for her contribution and her expertise from the National Housing Federation, asked whether we were going to be doing things more deeply and more widely. To deal first with the “more deeply”, it is very much unfinished business as far as the metropolitan areas are concerned. If they want to come forward with proposals for further devolution, we are very open to that. Touching on the issue of police and crime commissioners, that too could be brought forward by the areas that already have devolution. There is, of course, one example other than London where we have a police and crime commissioner who is also the metro mayor: Manchester. The issue of coterminosity of boundaries would need to be looked at in that connection, but that is certainly a point.

As for the “more widely”, certainly there is unfinished business, as we have heard quite rightly from the noble Lord, Lord Wallace, on Yorkshire. There is unfinished business in South Yorkshire, where, having had authorities sign up to the agreement, we have not got all of them over the threshold to carry things forward. That has caused frustration across parties. We have been doing what we can, and we will still do that across parties to try to achieve that. In Tyneside as well, we have heard that there is unfinished business. I think we all would want to end what is a patent absurdity of devolution north of the Tyne but largely not south of the Tyne, except for transport.

The noble Baroness, Lady Quin, referred to the great things achieved in Gateshead, which is absolutely true, including the Sage, the BALTIC and the bridge. However, for them to be part of the agreement with Newcastle must follow, as night follows day; it is crazy for one part of the Newcastle area to be devolved and not the other part.

The noble Lord, Lord Shipley, said that this was not to detract from London, but that the aim must be to bring economic development elsewhere—although that is not the only aim of what we seek to do. However, I hope the noble Lord will forgive me for saying that he then seemed to round on Oxford and Cambridge. Following on from what my noble friend Lord Lansley said, by the same token, they are not seeking money and this is an area of growth that helps the whole country. The aim must be to help all areas flourish, and that is what we are seeking to do.

The noble Lord raised the question of the northern powerhouse. The north in general is benefitting from £3.4 billion of investment going to locally determined projects, and specifically £337 million going to transport in the metro area of Newcastle, an area that includes places south of the Tyne. Government money does find its way to the north, but I understand that people will want to argue the case for their own area.

I thank the right reverend Prelate the Bishop of Newcastle for her positive and powerful contribution, as always, on behalf of her area and more generally. She cautioned against the creation of two nations and alienation, which is absolutely right.

I thank my noble friend Lord Lansley for his point about the chambers of commerce. I will take that away and underline it with BEIS. It is a very important point in carrying this forward. We must note the concrete examples he gave from Birmingham of the NEC, the airport and so on. I thank him for that. He also talked about the nature of Cambridge, the most prosperous city in Europe, which is something that should benefit the whole country.

The noble Lord, Lord Rooker, was very supportive of the report and referred to the transformation of Liverpool. He said quite correctly that Whitehall finds devolution difficult, which I know about from the Welsh perspective. It has got better in relation to Wales—much better—but there is still work to be done. I recognise what the noble Lord said.

I neglected to mention earlier the Select Committee, which I think is a good idea. Whether it is in the shape of a Joint Committee or not is above my pay grade and expertise, but it is an idea worth pushing.

The noble Lord, Lord Hunt, and others referred to the tourist tax. From going to Europe, we are all familiar with the bill at breakfast time for the tourist tax. We all pay it very willingly, and so it seems like a good idea. I had better be careful in going any further than that, except to say that we will forward the idea and the comments made to the Treasury.

Recently, I was in Birmingham for Windrush events, and was taken to an event in support of the Commonwealth Games. There is a growing enthusiasm, as there was in London, but I agree that it needs financial underpinning. Presumably the Treasury will be aware of that and will want to make sure that it is at least as great a success as the Olympic Games in London in 2012.

The noble Baroness, Lady Janke, spoke from her experience in Bristol and talked about the great European cities. The politicians on the continent who have come forward from being mayor are notable, including Jacques Chirac and Sarkozy, Matteo Renzi in Florence and, a generation previously, Willy Brandt in Berlin. There is a much closer link there, whereas here we have previously been able to offer only Joe Chamberlain. I suspect that that is about to change next week when it comes to mayors who have gone on to other things.

The noble Lord, Lord Adonis, asked about the borrowing cap. I will give him more details in a letter, if I may, but work is progressing on that, with examples in Brighton and Hove and in Stoke. It is beginning to happen, but it is early days; I will enlarge on that in a letter. He referred also to the general position on constitutional reform, for which a case could certainly be made. He also asked about the issue of mayors and police and crime commissioners, which I think I have covered.

My noble friend Lord Inglewood also talked about the great European cities and the global nature of London. Many people referred to the growing imbalance in Britain and the centralisation. It is true of France, to some extent, but it is possibly greater in Britain. Part of that is just because of the global nature of London, which it would be very difficult to do anything about even if we wanted to. We do need to encourage the provincial dynamism that he spoke about; it was a point very well made.

My noble friend Lord Haselhurst, with his great experience of Yorkshire, Lancashire, Birmingham and, more recently, Saffron Walden and north Essex, recognised how valuable it is to seek to ensure that we get a rebalancing within the country and have local power going to our great cities and, indeed, beyond, throughout England.

The noble Baroness, Lady Quin, spoke powerfully about what is going on in Gateshead, as did my noble friend Lord Horam. In terms of Tyne and Wear Archives and Museums, where she does so much, she recognised that the current structure does not make sense. Anything that we are able to do in a pragmatic way to make it work more effectively would be really welcomed.

The noble Lord, Lord Storey, who has roots in Liverpool, referred powerfully to the situation in Toxteth and how that was turned round, so that now one goes to Liverpool and there is a great sense of pride about the Albert Dock, the cathedrals and Toxteth. It has changed massively and, although there are still challenges, it is very different from how it was previously.

The noble Lord, Lord Butler, gave a great welcome to the report. He talked about putting someone in charge, which is a theme that came across and with which many agree. He had doubts about a department for the regions and talked about the dangers of silo thinking, which I think we all recognise. He also talked about the focus on Brexit, which has meant that we have not paid attention to other things, and indicated that there is a “fertile field for enthusiasm”. That is a message to carry forward and I thank him very much.

My noble friend Lady Eaton talked about councils being best placed to deliver for local people. Again, that theme came through.

The noble Lord, Lord Desai, perhaps gave this more of a Brexit spin. I am not sure that I agree with him totally that Brexit is an English crisis. For example, Wales voted almost the same way as England. That is not something I am happy with, but it is a fact of life, so it is a little bit wider than that.

The noble Lord, Lord Stunell, talked about the energy of my noble friend Lord Heseltine and how he brought this issue to bear, which has been a mission for him through the years—and thank goodness for that. He had some very valid points about traffic situations. Again, I recognise that from Wales, where if you wanted to get a speed limit changed in a village you had to wait for an accident and pray that there was not going to be too serious an accident before you could do it. That has all changed and is very much better.

My noble friend Lord Horam talked about his experience from Preston, Gateshead and, more recently, Orpington, and the importance of putting someone in charge and having drive at the centre.

The noble Lord, Lord Hunt, welcomed what we are seeking to do and, though not necessarily agreeing with all that was in the report, talked about the importance of a new financial settlement. I agree with that. Clearly, it is going to be a matter for a spending review and the new Government, but these things will come with a price tag. It is not just about the money, but money will be needed for much of this. I have dealt with the point on the Commonwealth Games and the tourist tax.

The noble Lord, Lord Wallace of Saltaire, made valid points, some of which we have been dealing with in the public lavatories legislation, such as the position in Saltaire and Bradford. He talked about how we need to break the logjam in Yorkshire, not least because the area he represents and is from is unrepresented by a metro mayor—my personal view is that that is not a desirable situation—and an impasse exists in South Yorkshire. He asked about the shared prosperity fund. I fear this is the usual line, but there is no change on it; it will be a matter for the spending review. It will obviously take into account the interests of different parts of the country and seek to ensure that those which most need the shared prosperity fund—perhaps those which previously benefited from cohesion funding—will continue to receive benefits.

Lastly, I thank the noble Lord, Lord Kennedy, for the points he raised. I agree with much, but not all, of what he said. As usual, he made some very good points. He spoke about the transformative changes brought about in Docklands in London, which is absolutely true. I should perhaps say in parenthesis that, in Wales, something similar happened with the Cardiff Bay development, which Nicholas Edwards, the late Lord Crickhowell, took forward. The docklands in Cardiff is a larger area than the docklands in London, but the project has been similarly transformative.

With that, I thank noble Lords very much. I will write to answer points of detail that I have missed, but I once again thank my noble friend Lord Heseltine for ensuring that we have had such a great debate. This must be a rare occasion on which there are probably more people in the Moses Room than in the Chamber of the House. That is another tribute to him.

Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2019

Lord Bourne of Aberystwyth Excerpts

Monday 15th July 2019 Grand Committee

Moved by

[Lord Bourne of Aberystwyth]

That the Grand Committee do consider the Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2019.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I beg to move that these regulations, which were laid before the House on 10 June, be considered. The regulations will remove a sunset clause in the existing 2012 fees regulations, thereby ensuring that local planning authorities can continue to charge fees for planning applications. They will also introduce a fee of £96 for prior approval applications for a larger single-storey rear extension to a house. If approved by this House, this new charge will come into effect 28 days after the regulations are made. Planning fees are an important source of income which supports local authorities to have the resources and capacity to make effective planning decisions. It is therefore vital that the fee regulations remain in force.

It is vital that we have well-resourced, efficient and effective planning departments, capable of providing a planning service that local people and applicants expect. Planning application fees provide essential income to enable local authorities to deliver this service, and to consider and determine planning applications. In January 2018, we raised planning application fees by 20%. This was the first uplift since 2012 and it has increased income for the planning system and enabled local planning authorities to improve their performance. We estimate that in England, the total income raised through planning application fees is £450 million per annum. If there were no application fee, this cost would have to be funded by the taxpayer.

I turn to the details of the draft regulations. In Regulation 2, we are removing the sunset clause of 21 November 2019 contained in the existing 2012 fees regulations: namely, the Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) Regulations 2012. The sunset clause and a post-implementation review condition were included in the 2012 fees regulations to ensure that the regulations were kept under review and removed from statute if they were no longer necessary. A post-implementation review was undertaken in 2017 and the outcome report laid before Parliament in December 2017. I am pleased to confirm that the review concluded that the objectives of the regulations remain appropriate in providing for the proper consideration of planning applications; therefore, the national planning fees regime should remain in place.

To ensure that the fee regulations remain in place, it is necessary to remove the 21 November sunset clause. This will ensure that applicants continue to pay a fair and consistent fee, and that local authorities will be able to continue to charge planning application fees and have the resource and capacity to make high-quality and timely planning decisions. If the sunset clause was not removed, the fees regulations would cease to have effect after 21 November of this year. This would mean that local planning authorities would no longer be able to charge any fees for planning applications.

Regulations 3(1) and 3(2) introduce a £96 fee for applications for “prior approval” for existing permitted development rights for a larger single-storey rear extension to a house. Perhaps I may summarise the position as it will be if the regulations proceed. This permitted development right allows householders to build larger single-storey rear extensions that are between 4 metres and 8 metres for detached houses, and between 3 metres and 6 metres for all other houses. Extensions smaller than this do not require prior approval and therefore do not attract a fee. Extensions that are larger than 8 metres for detached houses and 6 metres for all other houses would require planning permission in the normal way, so would attract a full planning application fee of £206.

The prior approval process means that a developer has to seek approval from the local planning authority that specified elements of the development are acceptable before work can proceed. The matters for prior approval vary depending on the type of development, and those are set out in the relevant part of the general permitted development order. A local authority cannot consider any other matters when determining a prior approval application.

The permitted development right for a larger single-storey rear extension to a house was made permanent by way of amendments to the general permitted development order on 25 May, but the associated application for prior approval required to exercise that development right attracts no fee. Now the right is permanent, it is appropriate that we should enable local planning authorities to charge and receive a fee for the work that they undertake to process and determine the applications they receive.

A £96 fee will be an additional cost to those home owners wanting to extend their homes in that way. However, that fee is the same as the fee for other applications for prior approval, as the cost to the local authority of handling these types of application is similar—for example, demolition of a building, agricultural buildings and certain solar developments. It is not fair that this cost should continue to be subsidised by the taxpayer generally. The fee is less than the £206 fee that would be required for a full planning application to carry out these works to a house were it not for the permitted development rights. It will provide local planning authorities with resources that may otherwise have been diverted from other planning applications.

In line with existing fees for planning applications to alter or extend a home, the regulations continue to provide for existing exemptions in the 2012 fee regulations, such as when an extension provides facilities or means of access for disabled persons; those would continue in just the same way.

We continue to keep the resourcing of local authority planning departments and where fees can be charged under review. Noble Lords will be aware that we announced in the Spring Statement that the accelerated planning Green Paper, to be published later this year, will look at new approaches for local authorities to meet the costs of their planning service through possible additional fees and to deliver improved performance. In the meantime, these regulations ensure that local authorities can continue to charge planning fees, including the new prior approval fee, after 21 November, thus providing them with the resources they need to consider such applications. I commend the regulations to the Grand Committee.

[Baroness Thornhill (LD)]

I thank the Minister for that concise and informative introduction. We understand the technical purpose of the SI, and particularly appreciate the need for local authorities to be able to recoup their costs. The uplift of 20% that he mentioned was certainly welcomed, although he is probably as aware as I am that there is still a gap.

Evidence shows that more and more people extend their homes rather than move, so an increasing number of prior approvals are being sought. Therefore, the ability to charge for that will be welcomed. I know from personal experience that there is a reasonable amount of work involved, the more so in larger extensions. Those usually involve conflict with the next-door neighbour, who of course has no means of stopping the development because these are permitted developments. Despite that, councillors and officers get drawn in and it all takes time. I am curious about how the nationally set cost of £96 has been arrived at, alongside other fees. Perhaps the Minister could point me in the right direction for an explanation.

As the Minister said, councils need well-resourced planning departments to deliver the Government’s ambitious housing agenda; on that we agree. There is also a national shortage of planning officers, and the cost of living in different parts of the country differs considerably and means that councils struggle to recruit or have to pay higher salaries if they are to function. Yet these fees are nationally set, so from Land’s End to John O’Groats they are the same. Are there any plans to allow a fair and transparent scheme to give councils flexibility to set appropriate fees that might reflect local circumstances?

Permitted development rights in general are being extended, the latest being, as the Minister said, in May this year, despite some serious opposition from organisations such as the Campaign to Protect Rural England, the Town and Country Planning Association and others that have genuinely well-documented concern that in the Government’s legitimate desire to increase the number of homes, which we would absolutely agree with, issues such as quality and sustainability are being totally neglected, and that the most recent liberalisation of permitted development on the high street could be a blessing or a curse depending on local circumstances. Councils’ only recourse is to apply for an Article 4 direction to remove that automatic right. I know from personal experience of how difficult it was to get an Article 4 direction placed on our premier office headquarters area that this is neither speedy nor simple. We succeeded, but it was an expensive, tough battle. Do the Government keep records of the number of councils that apply for an Article 4 direction and how many are actually granted? The Minister mentioned other reviews; are there any plans to review the impact, good or bad, of the extended permitted development rights, particularly on quality and sustainability?

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I draw the Committee’s attention to my relevant registered interest as a vice-president of the Local Government Association. As noble Lords have heard, these regulations will remove the sunset clause to enable fees to be charged beyond the date the noble Lord referred to and introduce an additional £96 fee for prior approval applications for larger new extensions.

As far as they go, I am very happy to support the regulations. The increases in fees in recent times have generally been welcome, but it is still fair to say that planning departments are still being subsidised by the local council tax payer. We should try to eliminate that over a period of time. I agree very much with the comments of the noble Baroness, Lady Thornhill, who asked how the £96 fee was arrived at. It would be good to hear that from the noble Lord, Lord Bourne, because it is a fair point that there are different associated costs across the country. How was this one figure reached? I look forward to hearing that.

I have mentioned many times during these debates that the Government often want to try new things out, such as new pilot schemes. I have asked many times: why can we not find just one volunteer authority to look at full cost recovery of planning fees? Surely we can find just one council in England to do that for us to see whether full cost recovery would work. It might not, and the pilot might show that that is the case, but I cannot see why we cannot find just one council somewhere in England to pilot full cost recovery on planning fees for the Government to see what effect it has. We hear lots of stuff about planning, most of it a load of old nonsense about how planning committees and planning departments are holding up all this housebuilding. It is absolutely rubbish. Was it 300,000 applications without a brick being laid? I know that the noble Lord did not say that, but we read this rubbish all over the place. I do not see why we cannot look at full cost recovery and at how it is not the planning regime, the council or the planning committees holding up housebuilding.

Having said that, I have no objection at all to the regulations. I am very happy to approve them and I look forward to the noble Lord’s response to the few points that I and the noble Baroness, Lady Thornhill, have raised.

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Baroness, Lady Thornhill, and the noble Lord, Lord Kennedy, for their contributions on the issue of planning fees. I seek to deal with their points in the order they were raised.

I thank the noble Baroness for her general welcome of the 20% increase, which has certainly made a difference to the running of planning departments up and down the country. She rightly referred to the use of prior approval for larger, single-storey, rear-of-house extensions. In the two years up to March 2019 there were just over 52,900 prior approval applications for such extensions of which 81% proceeded. That indicates the importance of the £96 cost.

Both the noble Baroness and the noble Lord asked how that cost was arrived at. I referred to the fact that some applications already attracted it. I will not go through the whole list as it is quite long, but I will give a sample and ensure that I send the full list to the noble Baroness and the noble Lord. Here are some examples: the erection of an agricultural building; the method of demolition of a building; development consisting of the erection or construction of a click-and-collect facility within the curtilage of a shop; the temporary use of buildings or land and the associated temporary structures for the purpose of commercial filmmaking; the installation, alteration or replacement of solar photovoltaic equipment on the roofs of non-domestic buildings; the change in use of buildings or land from offices in class B1(a)—the list goes on. I accept that the question of how the figure of £96 was arrived at remains but I hope that the fact that it is the consistent amount charged for so many different applications is helpful for the noble Baroness and the noble Lord. I will ensure that it is assessed.

The noble Baroness, Lady Thornhill, asked about the quality of developments. As I indicated, permitted development rights are delivering additional, much-needed new homes. Of course, all homes are required to meet building regulations right across the board, including in respect of fire safety. We expect all homes to be of good quality, but we are aware of concerns raised about certain developments. That is why we announced in the Spring Statement that we will review permitted development rights for the conversion of buildings to residential use in respect of the quality standards for homes delivered. I think that the noble Baroness made that point relating to Article 4, but I will pick up on it in more detail in a letter; I thank her for what she said.

The noble Baroness and the noble Lord both raised the issue of additional fees. The accelerated planning Green Paper will be issued later this year and will look at some of the issues that were touched on. For example, it could cover the point made quite fairly by the noble Lord about a pilot for full cost recovery, although let us wait to see to what extent; there will certainly be an opportunity to look at that matter.

I thank the noble Lord, Lord Kennedy, for his support. I agree that it is important that we get this right and fund planning departments appropriately; they should be funded by planning applications fees, not cross-subsidy, unless that is what councils want, perhaps in addition to putting in extra staff. That remains a possibility but, in principle, we expect the fees to pay for planning departments. I anticipate that the accelerated planning Green Paper, which will be out later this year, will look at that issue.

Once again, I would be grateful to the noble Baroness and the noble Lord if they would allow me to pick up on their points of detail in correspondence.

Motion agreed.

Non-Domestic Rating (Public Lavatories) Bill [HL]

Lord Bourne of Aberystwyth Excerpts

2nd reading (Hansard): House of Lords
Wednesday 10th July 2019 Lords Chamber

Moved by

[Lord Bourne of Aberystwyth]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I am pleased by noble Lords’ interest in the Bill and look forward to hearing the views of the House on this important matter.

This Government recognise the vital role that public lavatories play in our communities. Town centres, visitor attractions and local hubs all rely on good access to these facilities. People’s ability to work, shop or enjoy their leisure time depends on appropriate toilet facilities. This can be especially important for those with particular health needs, or for individuals, such as taxi or delivery drivers, who do not work in fixed locations. More widely, adequate lavatory provision contributes to public health and improves the local environment, particularly in terms of street cleanliness and disease control.

Given how vital these facilities are, it is understandable that there has been public concern about the reduction in available lavatories. Individual closures are often understandable where facilities are no longer suitable, however a reduction in overall coverage is an inconvenience for the public. The Government recognise this and we are therefore taking action to reduce the costs of those facilities most at risk. The Bill will support those who provide public lavatories and make it easier to keep them open. At Budget 2018, the Government responded to calls from local councils and the public, and committed to introduce 100% business rates relief for public lavatories. This will be a permanent measure and will apply to hereditaments—properties with their own rateable value used wholly or mainly as public lavatories, rather than those inside larger buildings. “Wholly or mainly”, in this context, refers to a situation where there may be some ancillary purpose such as baby-changing facilities in the lavatory, so that it would not be wholly a public lavatory.

We can all envisage stand-alone facilities of public lavatories in towns, cities and communities that we know. These would be where there is a separate rateable value attached, such as—as raised in discussions with the noble and learned Lord, Lord Hope—the lavatories in the subway at Westminster Tube station, which are separately assessed so they would qualify for this. More widely, the noble and learned Lord and I shared a memory of a case that concerned these public lavatories: The Mayor and Corporation of Westminster v London and North Western Railway Company, a 1905 decision in the House of Lords. It concerned the building of these lavatories, and the question of whether access from either side of Whitehall, providing a thoroughfare for individuals, was legitimate in this connection. The House of Lords, reversing the Court of Appeal decision, decided that it was legitimate.

This Bill will provide important financial assistance from central government to those who provide these facilities. I also commend the local authorities and town and parish councils up and down the country that work hard to provide public lavatories in their areas. I note that the Welsh Government wish to apply this measure in Wales; accordingly, a legislative consent Motion will apply from the Senedd, the Welsh Assembly, in this regard. I therefore extend those best wishes to community councils and local authorities in Wales.

I also pay tribute to the local authorities, associations and businesses that have launched local initiatives to provide further lavatory access to the public. The Community Toilet Scheme, originally devised by the London Borough of Richmond upon Thames, is now widely used by many local authorities across the country. For example—this is only an example; it is applied quite widely—it includes schemes in Stockport, Kettering, Oxford, Poole and Amber Valley, among others. This enables local businesses to work with councils to widen lavatory access so that the public can use the facilities in shops, restaurants and so on without making a purchase. Often the local authority will provide a fee for this to the local businesses concerned, and that fee is variable. It is publicised in various ways.

The British Toilet Association runs a national campaign called Use Our Loos, which encourages businesses to join these community schemes and open their toilets to the public. Participating lavatories are shown on a map, called the Great British Public Toilet Map, so that visitors to an area always know where facilities are available. I tried this map before coming here today and it works incredibly well. You search for a particular town. For example, I searched Helston, where I was last week, and five public lavatories come up that people are able to visit. I also put in Saltaire—but more of that later, I suspect, when the noble Lord, Lord Wallace, speaks on this subject.

[Lord Wallace of Saltaire (LD)]

According to the figures that Bradford metropolitan council has given me, 10 years ago it provided 49 public toilets; it now provides only seven. That is a huge reduction. I am aware that there have been hundreds, if not thousands, of closures of public toilets in other parts of the country, but the Government must have some overall figures showing just how large the reduction in public provision has been.

[Lord Bourne of Aberystwyth]

My Lords, I do not have the specific figures that the noble Lord refers to, but I can deal with the issue of how many are likely to be available under the scheme, which I am sure he will find helpful. I can tell him that a public lavatory in Saltaire came up on the map, but we can engage on that later. I can seek to get the figures that he is referring to but I do not have them to hand.

As I said, participating lavatories are shown on a map, called the Great British Public Toilet Map, so visitors to an area will always know where facilities are available. Obviously, tourist information centres will also have this information but I am keen to see whether there are other ways in which we can publicise the availability of lavatories in towns and communities. This is something that I am asking officials to look at.

For those with conditions or particular health concerns that sometimes mean that they require lavatories at short notice, the Can’t Wait card is now widely accepted by businesses, even when they do not offer public facilities. That seems appropriate, no matter how many public lavatories there are in a town. In that situation, you may need to go to somewhere much more to hand, and I am sure that noble Lords will join me in applauding that initiative.

Of course, for people with special access requirements, it is not just about having any facilities available but having the right facilities. There has been a cross-government drive to provide more Changing Places lavatories to help maintain the dignity of people with special lavatory requirements when they are away from home. The Department for Transport’s Inclusive Transport Strategy includes providing £2 million of funding to improve the provision of Changing Places toilets in motorway service areas, for example.

The Department of Health and Social Care has made £2 million available to install over 100 Changing Places toilets in NHS hospitals throughout England, and in 2015 the Ministry of Housing, Communities and Local Government provided funding for an online map of the UK that helps carers and disabled people find Changing Places toilets. Lastly in this connection, the MHCLG is also currently running a consultation on proposals for increasing the provision of Changing Places toilets in new and refurbished buildings. That consultation seeks views on a mandatory requirement for Changing Places toilets in building regulations and will close on 21 July 2019. There are now over 1,300 changing places facilities available, compared to 140 in 2007. That is a considerable success and I am sure that noble Lords will applaud it.

The Non-Domestic Rating (Public Lavatories) Bill is only a short, four-clause Bill, but one that will provide important support for councils in England and Wales to keep these vital public facilities open.

The Welsh Government have worked with the UK Government to ensure that stand-alone public lavatories in Wales will also benefit from this measure. It is based on Part 8 of the Public Health (Wales) Act 2017.

We have had plans in the pipeline for some time. A measure to enable local authorities to give business rates relief to public toilets through the discretionary relief system was part of the Local Government Finance Bill in 2017. Though that Bill fell with the general election of that year and was not reintroduced, at the time there were significant concerns that a discretionary relief not fully funded by central government would not be widely used. The Government have responded with this new relief under the current Bill, which goes further than the previous measure because it will be mandatory. The full cost of the relief will be met by central government in England and by the Welsh Government in Wales.

I will give some idea of the cost of the measure, given that that was raised in passing by the noble Lord, Lord Wallace. It will cost £6 million per annum in England and £450,000 per annum in Wales. As calculated at present, it will help to save 3,500 lavatories in England and 500 in Wales. This will extend to new lavatories built and separately assessed; they will attract the same relief under the same system.

In conclusion, the substance of the Bill has been called for by councils, health and disability charities and many members of the public. It is on a subject of wide and important public interest. The Government have also engaged with the British Toilet Association and the National Association of Local Councils on the rollout of this relief. This important, if unglamorous, measure will make a real difference to the lives of people up and down the country. The savings will be of vital assistance to councils where removing the additional costs of business rates could help to keep these facilities open. I commend the Bill to the House and beg to move.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, I thank noble Lords who have participated in the debate on this important Bill. I do not accept for a minute that it is a small, unimportant Bill. It is a short Bill, certainly, but I think it has significance, so I do not understand the reference to it being a mouse of a Bill. It will take a substantial amount of public spending to help keep public lavatories open.

Let me deal with the various points made by noble Lords who participated and who gave a warm welcome to the principle of the Bill. I say in passing that this goes further than the provision in the Bill of 2017 that fell with the general election, in that it is mandatory. Secondly, there was a promise by the Chancellor in the Budget Statement 2018 that we would do this in relation to self-standing public lavatories. The reason we have not gone beyond that is one of cost and resource. I am happy to engage with noble Lords before Committee to go through that. It is not just a question of the relief itself, but the fact that we have to assess all these different properties to assess what would be the stand-alone cost of the public lavatory, and that is a massive undertaking which would be costly and time-consuming. I am conscious of the fact that there may be some urgency in relation to this measure—not just doing it quickly because it is desirable, but in terms of the days in which we live and the desirability of getting this legislation through.

I thank the noble Baroness, Lady Pinnock, very much for her general welcome. She mentioned Cornwall. I was in Cornwall last Thursday, Friday and Saturday and because I knew this was coming I had the opportunity to discuss it with people in museums, particularly in Helston. I remember stopping there to find six public lavatories in a fairly small town—admittedly with tourist visitors. Cornwall is not an incredibly wealthy area, yet they had six public lavatories. They welcomed this because it will help some, if not all, of the public lavatories, which I think would be separately accessed. So I do not quite recognise the picture the noble Baroness was painting of Cornwall. I was variously in Redruth, Truro, Falmouth, Helston and Saltash, where the provision seemed to me perfectly adequate and probably beyond adequate, so far as I could see. Certainly, all those communities are far smaller than Kirklees.

I am not totally familiar with the position in Huddersfield, but I believe there are shopping centres, where there is presumably provision of lavatories. They are valued, in so far as shopping centres are concerned. There are technical reasons for this, but the rate that attaches to the public lavatory is very low because it is factored in with the shops in the shopping centre. I assume that that is the case. I do not know the position at Huddersfield railway station, although it is not so long since I was there because it has one of the most marvellous facades in the country.

We have to recognise that we are living in a different world. For example, I referred to the ability to check on a mobile phone where the nearest lavatory is. I do not know whether the noble Lord tried this when he was finding difficulties in Stratford-upon-Avon, but it is well worth doing. Yes, I think we need to publicise it far more than we do, but it is a very easy way of finding the nearest lavatory, wherever one happens to be in the country. There are many more shopping centres than there used to be, and many more coffee bars. I am not saying that that is the sum total of where we need to be, but it is a changing world. That was not the world we were in even 10 years ago—certainly not 20 years ago. We need to recognise that circumstances change. As I say, the principal reasons we are not going further than we are—and this has an annual cost of £6 million—are the cost and resourcing, particularly in getting it done quickly.

I thank the noble and learned Lord, Lord Hope, very much indeed for his contribution. His experience here, his knowledge of the complicated situation and of where we are, is welcome. I was very interested in the legal tourism possibilities, and noted down that the lavatories at Westminster could perhaps be a stop-off point between Sayers v Harlow Urban District Council, which I think was a case of false imprisonment in a public lavatory, and Hightrees House in Clapham, which had nothing to do with lavatories but was a significant case. Some very interesting possibilities of legal tourism open up which we could perhaps engage in on another occasion. The noble and learned Lord made the point about rail stations, airports, shopping centres and so on; the challenge of extending it is an economic one.

I thank the noble Baroness, Lady Thomas of Winchester, a doughty campaigner for the rights of disabled people, for her contribution. I will very happily make officials available to talk through the consultation we are currently holding. I extend that offer to other noble Lords who may want come along and talk to officials; I hope that they will participate in our consultation on changing places and toilet provision. I note, as I said in opening, that this rating relief will of course allow the reopening of lavatories—or, indeed, the building of completely new lavatories if they are self-standing—to attract the rating relief. I know that some councils have closed the buildings where there are stand-alone lavatories, and they remain boarded up. That may well be a possibility. I can also think of councils up and down the country whose reason for closures has not necessarily been just about the cost. Often, as noble Lords will appreciate and agree, it has been about drug use and other factors. That also needs to be said.

Perhaps implicit in what noble Lords have said—in fairness, the noble Lord, Lord Kennedy, who is always fair, said this too—is that this did not just happen overnight. I took down what he said; I think he said it has happened “over many years”. That is indeed true. This did not suddenly happen when we got a Conservative Government in 2015. I do not have figures, but, in so far as I have been able to get some figures about closures, this has been happening for a long time, so it does not stand up that this has been brought about by the suggestion of Gradgrinds in 2015. That is not remotely the case.

I will happily look at the issue raised by the noble Baroness, Lady Thomas, of the audit of accessible facilities. I do not know how easy that will be to do, but, when we discuss this with officials, we can look at it if that would be helpful.

I thank the noble Lord, Lord Wallace of Saltaire, very much indeed. He is always quite rightly fighting for his community and the legacy of Titus Salt. I think that Salts Mill and the Hockney Museum are free entry and open seven days a week, and that the lavatories there are essentially open to the public.

[Lord Wallace of Saltaire]

They are indeed. Maggie Silver, who manages the mill, tells me that she has more than doubled her orders for loo roll since the public toilets have closed. It is just possible for disabled people to get in there, and the question of access for disabled people is a very important part of this issue, as I hope we all agree.

[Lord Bourne of Aberystwyth]

I do, and I hope that was implicit in what I said to the noble Baroness, Lady Thomas of Winchester. I thank the noble Lord for acknowledging that there is at least the possibility of use there. Again, I am very happy to talk about the position of Saltaire with him; I think there was a closure of a public lavatory in Saltaire in 2018, and I am happy to talk to him about that.

The noble Lord opened up the debate far wider than I had really prepared for; I think the noble Baroness, Lady Pinnock, introduced taxation for Amazon and the noble Lord extended it to libraries, independent schools and the legacy of the Conservative Party and so on. I have always been much more of a Disraeli man than a Gladstone man. I can certainly put that on record and am happy to associate with some of the one- nation traditions of Macmillan and Macleod, but that takes us a bit further than where we are with this Bill.

I do not agree with the noble Lord about this being a mouse of a Bill; I hope that local councils throughout the country recognise that it is a genuine, and relatively costly attempt to ensure that we help with those 3,500 lavatories that are separately assessed in England and indeed, the 500 that are separately assessed in Wales. That is what the Bill is intended to do. The question of going more broadly can be looked at, but not in the context of this Bill because the resources from the Valuation Office Agency are just not there to undertake the work in the required timescale. I am sure that noble Lords would agree that there is a degree of urgency, both in a personal sense for individuals around the country and in a political sense. I hope that that is helpful.

I turn to the noble Lord, Lord Kennedy, who is always very fair on these issues. He recognised the importance of travel and tourism, and he is absolutely right. He asked whether we could do something about the provision for women, perhaps recognising that there is more of a need and often more of a queue for women than for men. That is a fair point. These provisions will at least help across the board.

The Can’t Wait card, which I mentioned in opening, refers to people who have an urgent need, through disease or other difficulty, for ready access to facilities. That extends beyond the number of public lavatories that there are. In those circumstances, people need somewhere that is immediately on hand, and the provision of public lavatories may help with that. However, there may be an urgency when this scheme would be desirable in any event. That is something that we should be proud of.

The noble Lord also referred to disabled access and the changing places scheme. I am very happy to write to noble Lords with more details on where we are on that, and as I said to the noble Baroness, Lady Thomas, to have a separate meeting with officials.

I hope that that is helpful. I will write dealing with the points I missed, and specifically with the changing places points made by the noble Baroness. With that, I beg to move that the Bill be read a second time.

Bill read a second time and committed to a Committee of the Whole House.

Homes for Social Rent

Lord Bourne of Aberystwyth Excerpts

Tuesday 2nd July 2019 Lords Chamber

[Lord Evans of Watford]

To ask Her Majesty’s Government what steps they are taking to increase the number of homes for social rent.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, a £9 billion affordable housing programme will support the delivery of at least 12,500 social rent homes in areas of high affordability pressure outside London. We are providing the Mayor of London with a £4.8 billion funding package and the flexibility to deliver social rent. The GLA is responsible for the delivery of affordable housing in London. In September 2018, we announced £2 billion of long-term funding for housing associations, supporting the delivery of additional affordable homes, including homes for social rent. Last week, we opened bidding on £1 billion of this funding through Homes England.

[Lord Evans of Watford (Lab)]

I thank the Minister for that reply but, according to independent research, we have a shortage of 3.91 million homes and need to build 340,000 homes per year until 2031—new homes, more quickly and to a more consistently high standard. What are the Government doing to incentivise innovation in the housing sector, and what support is being given to SMEs to challenge current housing issues, using volumetric technology in offsite manufacturing?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord is right about the challenges that we face. Just this morning I met Mark Farmer, who is heading up the committee that is looking at, and rolling out, modern methods of construction. We are making significant progress. An app has been developed specifically for London but it can be rolled out across the country with minor amendments, which is great news for us all. It covers design, climate change responsibilities and speedy delivery. The committee is making headway on bringing together the standards that we need so that money is advanced by lenders.

[Baroness Grender (LD)]

My Lords, does the Minister accept that the £2 billion put into the not very affordable housing programme falls woefully short of the £14.6 billion per year of capital grant recommended last week by the National Housing Federation and others? Without it, we will continue to see the nearly 40-year legacy of chronic failure to build social, not affordable, housing—a policy that has now driven our most vulnerable into the arms of the most unscrupulous parts of the private sector.

[Lord Bourne of Aberystwyth]

My Lords, I accept that we need to deliver more social housing. That has been the case for some time, including through the coalition years. However, I point out to the noble Baroness that last year we had the best year of housing delivery overall for 31 years in all but one year, and that is good news for all of us.

[Lord Naseby (Con)]

Does my noble friend recognise that social housing has been lamentable for perhaps the last 20 years across all Governments, including the Labour and coalition Governments? Against that background, perhaps I may press him once again to look at new towns and gardens towns to make sure that they have a major element of social housing provision?

[Lord Bourne of Aberystwyth]

My Lords, I thank my noble friend for his point about social housing delivery. He is right that it has been a challenge for successive Governments. We have delivered 79,000 social homes since 2010, which, it has to be said, is better than the numbers achieved in the previous nine years. In relation to his point about garden villages, we had previously announced 29 and last week we announced another 19. That is significant. It includes providing a special community village for dementia-friendly housing, which again is very good news, and I hope that that will also feed into the discussions that we are having about modern methods of construction.

[The Archbishop of Canterbury]

My Lords, I welcome very much that last answer. In that connection I declare an interest, in that I have set up a commission to look into the housing crisis and the contribution that can be made by civil society and particularly the Churches. It comprises a former Permanent Secretary and a huge number of significant experts. One of the commission’s earliest priorities is to look at how we create communities rather than simply build houses. That means that there is a need for multipurpose community facilities and for looking at the sociological aspects as well as the mere physical construction. Will the Minister undertake to listen to the representations from that and similar inquiries over the next 18 months to two years?

[Lord Bourne of Aberystwyth]

I thank the most reverend Primate very much for that contribution and I certainly give that undertaking. It is not just a question of putting up more housing; it is very important that we create or build on effective communities with the additional housing that we are looking at. That is a challenge. It is at the heart of the garden towns and villages programme and we want to carry that forward.

[Lord Best (CB)]

My Lords, this is Rural Housing Week, as I am sure all noble Lords are well aware. Rural housing is extraordinarily important because house prices are higher in rural areas, incomes are lower and a much larger proportion of homes are being sold under right to buy. Some schools are closing and we are getting child-free villages. Will the Minister allow me, at the National Housing Federation’s rural housing conference tomorrow, to say that the Government will indeed prioritise those small village schemes that can make such an immense difference to a community, allowing people to work, live and bring up their families in villages?

[Lord Bourne of Aberystwyth]

My Lords, I know better than to try to stop the noble Lord doing just that. I am keen to associate myself with that during what, as he rightly says, is Rural Housing Week. We do this already, although I recognise the challenges, having represented a deeply rural area. We do already have rural exceptions and provide weighting for housing developments because of the small and medium-sized enterprises prevalent in rural areas. The noble Lord is absolutely right: we need to do more.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I refer the House to my relevant interests in the register. Does the Minister support an increase in the number of co-operative housing schemes? If so, what support do he and his department give to local authorities and others to increase the number of schemes year on year?

[Lord Bourne of Aberystwyth]

My Lords, I know the noble Lord is very wedded to this and I am certainly happy to look at it. If he has specific schemes that he wants me to look at, I will very gladly do that with him. We have to be much more open-minded and diverse in forms of supply across the board. Certainly, the Co-operative movement and co-operative housing have a lot to offer in this regard.

Future of Seaside Towns

Lord Bourne of Aberystwyth Excerpts

Monday 1st July 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I am most grateful for the many valuable contributions made today, which highlight how much we all value our coastal towns—whether those in England or more widely, as the noble Lord, Lord Griffiths, has just demonstrated—how important it is to ensure that they have the ability to grow and prosper into the 21st century and how we put right some of the things that have certainly gone wrong.

The conversation has been frank and honest, and has given us much to consider. I will ensure that the debate is sent to all relevant departments; as is very clear, this does not just affect the Ministry of Housing, Communities and Local Government—the Ministry of Justice was something I had not foreseen—but it affects so many departments that I will ensure it has a very wide circulation. I will also ensure that anything I am unable to cover or that I miss is covered in a letter to all Peers who have taken part in what has been an excellent debate.

I thank the noble Lord, Lord Bassam, for securing this debate and enabling us to discuss this very important issue, for the obviously consensual way he has ensured that the committee has looked at these issues and for coming forward with a unanimous report, which I am sure makes it the stronger. The work that the noble Lord and his committee have undertaken has been very thorough and highlights the many challenges facing our coastal communities in the 21st century. That is not just true of England; it is equally true of Wales, and I speak with some experience. I probably do not know Burry Port quite as well as the noble Lord, Lord Griffiths, but I have certainly spent time in Cliff Terrace with friends and know the town very well. The same is true for Ferryside, which was referred to as well.

The debate has examined many of the challenges and it has been encouraging to hear many positive suggestions. I will set the scene a little and then look at points made by noble Lords. First, it is true that there are, as the noble Lord, Lord Griffiths, has just said, many different funds, ensuring that we have funds-a-gogo and programmes-a-gogo to make sure that they all work together, not necessarily in a competitive way but to dovetail together. It is important to have this meeting of all the relevant departments, bringing everything together to see how it all locks together.

We have the stronger towns fund, worth £1.6 billion; a prospectus on this should be available before the recess to show how that is taken forward. We also have the shared prosperity fund; the noble Lord, Lord Bassam, asked how coastal communities can be involved in that. When we take this forward there will be a wide consultation; we will want people and authorities to consult, and that will certainly include coastal funds. We have enterprise zones, of which there was mention early on. I think my noble friend Lord Smith said there was only one. I hope it was him; if it was not, I ask him to forgive me. There are in fact currently 15 coastal enterprise zones. I have the list here. Although I will refer to them in the course of this debate, rather than go through them all now I will ensure that the names and coverage of all of them are in the write-round letter. We are looking at up to another five as part of the tourism sector deal, which we have just announced. Reference was made to some of them: Berwick-upon-Tweed is covered by one of them, while at the other end of the country Falmouth, which has not been mentioned, is covered by another, and there are many inbetween.

There are local industrial strategies, framed around the work that the local enterprise partnerships are doing, first in the West Midlands and Greater Manchester—I shall ensure that more detail on that is also contained in the letter. The coastal communities fund does great work. Somebody suggested that it was not doing much but that is not true; it has spent £218 million since 2012, and we would be hearing about it if that money had not been well spent. That is in places including Whitley Bay—the Spanish City dome, to which the noble Lord, Lord Lennie, referred, has certainly been a beneficiary. I will deal with his other points later. Money has been spent in Wells-next-the-Sea on restoring the paper mill, and in Penzance on an art deco lido, and so on. There have been beneficiaries throughout the country.

The coastal revival fund is part of this mosaic; £7.5 million has been spent by that fund since 2015, including Jaywick, which the noble Lord, Lord Bassam, referred to. At the same time as he was growing up in Clacton I was growing up in Chelmsford, and we might even have been on that beach at the same time during our childhood—a frightening thought—because we often took weekend trips there. I have to say—perhaps to the shame of my parents, although climate change was not so apparent then—that we certainly used the car; presumably the train service was available, but it would have taken a while. Some of this was at least before the Beeching report, let alone the Beeching cuts. Similarly, money has been spent in Watchet in Somerset, where I hope to go this summer as a private citizen—this is not government business—as I want to use the heritage railway there, which runs from just outside Taunton to Minehead. There are many of these railways, which I may refer to later; I share many of the views of the noble Lord, Lord Faulkner, on that issue.

Town deals have been referred to. Grimsby has had a town deal since July 2018 and is a beneficiary, with money spent on the waterfront. Much has been made, quite rightly, of Blackpool, which perhaps presents some unique challenges. It is perhaps worth restating that our coastal towns all differ from each other. They are not all facing the challenges that Blackpool faces—in fact, only Blackpool is facing those challenges. Many of our coastal towns are thriving. To hear comments about them you would not think that, or would think that they had been ignored. St Ives, Padstow and many of the Cornwall resorts face challenges, but very different ones. They are not challenges of the sort we have seen around housing, and so on, but they are certainly challenges. However, perhaps we have not heard so much about those places, for reasons I can understand. Weymouth and Torbay, as well as Blackpool, are the subject of discussions on strategy and taking things forward. I will come to Weymouth in more detail later. Reference has been made to Margate, which is a bit of a success story, with the Turner gallery and work being done on the harbour area, where the gallery is.

I will make some general comments on housing. I understand the points made by the noble Lord, Lord Best, who understands these things. However, I slightly disagree with him when he says that rogue landlords are essentially reactive. In one sense they are, but if a clear message goes out that we are going to deal with rogue landlords, it becomes proactive, so it depends on which end of the telescope you are looking through. Therefore, I do not entirely agree with his point. Housing zones beneficiaries are Poole, Weston-super-Mare and Thurrock, which covers Tilbury, and North East Lincolnshire, which covers Grimsby and Wirral.

Planning and flooding have been referred to. Beneficiaries of work on this include Newhaven, to which the noble Baroness, Lady Whitaker referred. LEPs have been working on this with government money in Snape Maltings, the Fylde peninsula and in the Blackpool area.

Education was generally referred to and we have 12 opportunity areas, specifically targeting policies relating to social mobility. I think that that includes Blackpool—if I am mistaken I will correct it in the write-round letter—but it certainly includes West Somerset, Scarborough and Hastings.

Transport was a common theme. I accept its importance and will come to that when I turn to specific comments, if I may.

Some noble Lords, but not many—the noble Lord, Lord Knight, did—mentioned the need to adapt and change. Perhaps this is agreed by all noble Lords, but it did not come across quite like that; it is no good trying to turn the clock back and recreate Blackpool as it was in the 1970s or, as I think a noble Lord said, the 1950s. That will not work. We must take it forward and think about what Blackpool needs to look like in the middle of this century.

Let me try to deal with some of the points made. I thank the noble Lord, Lord Bassam, for his general comments about the Government, at least in part, being supportive. On the cross-Whitehall front, I do not yet have a date for the first meeting, but I will try to nail that down in the letter, because it is important that cross-Whitehall meetings happen frequently.

My noble friend Lord Smith referred to the importance of the tourism sector and tourism enterprise zones, and I hope that I touched on that. He highlighted the importance of New Brighton, which has indeed received some money—for the lighthouse, if I am not mistaken—from the coastal communities fund. I will confirm that in the letter.

The noble Lord, Lord McNally, spoke of the importance of Blackpool and Fleetwood, and I agree with both those points. He talked about transformative actions such as the Turner gallery in Margate, flood defences in Clacton, the Tate in St Ives and the need for public-private partnerships. I agree with all that: this is the only way this will work. I take very seriously his admonition for action this day—that is absolutely right.

The noble Baroness, Lady Bakewell, talked about the importance of education. I quite agree. She talked about Skegness and the importance of transport. We have given £4 million-worth of government money to enhance bus services, and I shall provide details in the letter. She also rightly talked about the importance of wi-fi. I know from the Welsh experience how important that is. I know the success in Cornwall and have often said: “Why don’t we just do what Cornwall has done?” There they have spent money and it has worked. I hope that some of the shared prosperity money will be used for that. Specifically, some money is being used and I will come to that later.

The noble Baroness spoke about the Pier of Year—as in a pier that goes into the sea rather than a Peer from this House. I absolutely agree with the points she made about Clevedon; I will also put in a plea for Cromer and Great Yarmouth, which are also very good. There are piers around the country. Indeed, there is a book on British piers which is well worth reading and having as a guide to those that may have been missed.

On art galleries, I agree. There is a string of them on the south coast. Something that occurs to me, to which I do not have the answer because it occurred to me only this morning, but I have asked civil servants to look at this, is that these days, because it is very important, we have arts festivals around the country. If I am not mistaken, nearly all seem to be inland, such as in Cheltenham, Oxford or Hay. I am obviously not right. I have asked civil servants to look at this. There may be opportunities for others. I can think of some smaller ones.

[Baroness Whitaker]

I invite the Minister to the Newhaven Arts Festival in August.

[Lord Bourne of Aberystwyth]

I thank the noble Baroness, but I was not saying that in the hope of getting an invitation. It is most kind. If I am able to come, I will be there—and if any other invitations are forthcoming, I will look at them in the same positive spirit. I apologise to any towns that may be offended by my missing their coastal arts festivals. I was aware that there are festivals in other parts of the country, such as Whitby and Brighton, although perhaps they are not as all-encompassing as those of Cheltenham, Chalke Valley and so on.

I have already referred to a point where I am not in total agreement with the noble Lord, Lord Best. He quite fairly said, though, that we have been taking action against rogue landlords: bad landlords are now subject to the Homes (Fitness for Human Habitation) Act. That was the Karen Buck legislation, which was taken forward with government support and all-party approval. I will ask officials to look at the specific point he made about Blackpool. I can see the challenge, there, if it takes in areas that are perhaps wealthier, such as Lytham.

The noble Lord, Lord Knight, referred to Fergus’s school reunion—or non-school reunion, as it turned out. As somebody who has holidayed in Weymouth, I was a little surprised—but perhaps I have been seeing it in warm weather, which always makes a difference. When I was there for a few days last summer, the harbour area seemed to be full of young people. I made use of the walk along the disused railway that goes down to Portland Bill, and the place seemed to be thriving; but obviously, I have seen only a snapshot. Perhaps I will have a chance for a longer chat with the noble Lord. I agree with his points about education and the importance of skills. It occurred to me that we do not do enough in this country on the transferability of credits, when compared with the USA—or, indeed, credits for work, which make a difference too. There is perhaps more to be done there. I agree with the noble Lord about the importance of a place-based approach.

The noble Lord, Lord Beith, is a great advocate for his home town, which he represented, along with other towns, for so long. He is quite right that this is not just about tourism. He talked about the lack of a university in Berwick, which is certainly true. There are no perfect parallels, but it occurs to me that it may be worth looking at the university in Falmouth, which operates partly alongside the University of Exeter. It has been a university since 2012 and has really made a big difference to Falmouth. I will be there later this week when I go down to Cornwall. The noble Lord is also right about the issues of remoteness, hospitals and so on.

My noble friend Lady Wyld spoke once again about Blackpool and, indeed, Fleetwood. She made a point which is really important—that what we should be doing is looking at doers, not the done-to. I think that is the governmental approach: it is the approach on neighbourhood planning, and we should be carrying that forward here. Governments should be enabling: they should be setting a framework and providing finance to people locally who are trusted—and then we should step back. There may be occasions when things go wrong, but they are going wrong with people who are expert and know what they are doing locally, and I think that that is important. We should be empowering, not micromanaging.

The noble Lord, Lord Pendry, spoke about Broadstairs and Ramsgate—a somewhat remote part of Kent, although Broadstairs has Dickens connections, so some ideas may already have been taken up locally there. He talked about the challenge of overseas travel, which certainly made a difference to the traditional seaside holidays that we can probably all remember from our younger days. Now we are much more widely travelled in Europe, which has made a big difference to the normal holiday—although people do go for long weekends, particularly in the winter months. We need to look at that particular point. The noble Lord, Lord Pendry, also raised the issue of a Cabinet post for tourism. It is well above my pay grade to opine on that, especially at the moment, but I will take the point back: I can see that it was a serious and valid one.

The noble Lord, Lord Mawson, also referred to the doers and not the done-to, and the importance of the Government being enablers. He referred to Skegness, Butlins and the seasonal nature of much of the work. I agree that that is a challenge that we have got to deal with: it has got to be fundamental to the way we take this forward. The noble Lord talked about Ferryside in Wales; I am sorry to spoil the point about Burry Port being such a success, but I should say that, although the Coastal Communities Fund is a national fund, the parts of it that apply to Wales are administered not from here but from Cardiff, just as they would be administered from Edinburgh in Scotland. He said, “Trust them and back them”, and I quite agree.

I thank the noble Lord, Lord Faulkner of Worcester. I found myself in almost total agreement with him, as I often do, about Beecham. When one is asked about who one would invite to a dinner party, I often think that I would ask Lord Beecham just to find out what possessed him to come up with his cuts.

[Lord Griffiths of Burry Port]

Sorry?

[Lord Bourne of Aberystwyth]

I am sorry; I meant Dr Beeching. It was a Freudian slip. The noble Lord, Lord Beecham, is not in that category; I exempt him. It was Dr Beeching who came up with the 1961 report.

I agree with the point about the Whitby service. Last year, I got to Whitby using public transport from Scarborough. It is an excellent town; I had the pleasure of going to Ayckbourn’s Stephen Joseph Theatre before getting the bus to Whitby, which took me through Robin Hood’s Bay. I then used the heritage line, which was also excellent. I agree that Whitby has been left without a valuable connection to the south. It is worth mentioning how good some of these heritage railways are, such as the line from Cromer and Sheringham to Holt; I think that the Swanage line and the Paignton line, which goes via Greenway House—Agatha Christie’s home and a National Trust property—on the way to Kingswear, were also referred to. They do a lot of good.

The noble Lord, Lord Shipley, mentioned the heritage railways and Whitby; I congratulate him on not being steeped in blood like everybody else because he was there objecting. He also talked about chambers of commerce, which I will certainly feed into the system. I think that they may be involved with some LEPs anyway, but it is a point worth emphasising. I agree with him on the importance of the voluntary sector and programmes such as “Heartbeat” in providing tourism opportunities. Some £1.8 billion of public money has been put into Digital UK’s superfast broadband programme; I am sure that the shared prosperity fund will look at this issue as well.

The noble Lord, Lord Lennie, referred to the position in Whitley Bay and asked about the Big Local. That is funded not by the Government but by the Big Lottery Fund. It is clearly worth while but if the problem continues, that is a matter for the fund. Again, I went to Whitley Bay not long ago on a trip to Tynemouth. I got there by public transport, which was not too difficult; the metro system was pretty excellent.

The noble Baroness, Lady Whitaker, made a plea for ports. Of course, some ports are successful; not all are in decline. I know that Felixstowe and Tilbury, which is inland—not inland, but on the river—are massively successful. Again, public transport to Tilbury is pretty good but I take the noble Baroness’s point. Newhaven is covered by an enterprise zone, which provides an opportunity for particular policy advantages. I think she mentioned Whitehaven, which does not benefit particularly from tourism. It is good that we do not think only about tourist resorts; I thank her for that point.

The noble Baroness, Lady Valentine, spoke about Blackpool and “The Lion and Albert”. From memory, I do not think it ended well for Albert, but we want it to end well for Blackpool. The housing zone is certainly something to look at; the town deal for Blackpool is being looked at. I cannot make any promises about that but I can say that Blackpool is a challenge that the Government take very seriously. It is close to all our hearts; we all know Blackpool, which is uniquely British and certainly worth saving.

I thank the noble Lord, Lord Shutt, for what he said about VisitBritain. It committed £40 million to the Discover England Fund, whose projects often concern coastal destinations, between 2016 and 2020 so, in its defence, it does quite a lot. We have also spent money on US connections to D-day and the “Mayflower”. I think the noble Lord referred to Mrs May; she holidays in this country, as he will know, on which she is to be congratulated.

I thank the noble Lord, Lord Griffiths, for what he said. I agree that we perhaps need a theme although, as we have seen, this is a wide-ranging area involving a great deal of different policy. I will check on the justice courts in Blackpool. It is a valid point that I will chase up. This is multifaceted. We need to consider the changes there have been in society and carry them forward. We all want the same thing. However, this is multifaceted and I will endeavour in the letter to fill in any gaps.

I thank noble Lords for a valuable debate, particularly the noble Lord, Lord Bassam, who has helped pull it together.

Non-Domestic Rating (Public Lavatories) Bill [HL]

Lord Bourne of Aberystwyth Excerpts

1st reading (Hansard): House of Lords
Tuesday 18th June 2019 Lords Chamber

A Bill to confer relief from non-domestic rates for hereditaments in England and Wales that consist wholly or mainly of public lavatories; and for connected purposes.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, as a matter of convenience for the House, I beg to move that the Bill be read a first time.

[The Lord Speaker (Lord Fowler)]

My Lords, the Question is that this important Bill be now read a first time.

Non-Domestic Rating (Preparation for Digital Services) Bill

Lord Bourne of Aberystwyth Excerpts

Tuesday 11th June 2019 Lords Chamber

Moved by

[Lord Bourne of Aberystwyth]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the Government are committed to ensuring that our tax system is in step with the digital age. Paying tax should not involve unnecessary administrative burdens and business should be able to take full advantage of modern technology to support an efficient and straightforward process. We believe that the administration of business rates, in line with all other taxes, should reflect these principles and be designed around the needs of the taxpayer.

Of course, HMRC has already taken significant steps to roll out digital tax services, giving businesses more control over their finances and allowing them to spend their time focusing on innovation, growth and the creation of jobs. The Bill builds on those foundations by paving the way for a similar digital-first approach for business rates. It is a simple measure that will allow HMRC to explore a future digital system for the administration of business rates. It will give it the necessary statutory powers to expend resources on designing a digital business rates system, potentially linking local authorities’ billing systems with HMRC’s.

We are bringing forward this paving legislation—I stress that it is paving legislation—in response to the feedback to the 2016 comprehensive review of the business rates system. As well as inviting views on the tax itself, we asked for feedback on the administration of business rates and how they are billed and collected. Following the 2016 review, the Government have taken extensive action to improve the operation of the current system. They have answered calls from businesses for more frequent revaluations and to change the annual indexation of the business rates multiplier from the retail price index to the consumer price index.

In their responses to the review, businesses also called for the modernisation of the billing and collection of business rates. This was also reflected in the Institute of Directors’ evidence to the current Treasury Select Committee inquiry into the impact of business rates on business. It called for HMRC’s Making Tax Digital efforts to extend to business rates. Businesses are already highly engaged with digital services, making sales, banking and paying bills online. The business rates system needs to reflect these changes so that it is easier for businesses to manage their bills.

Currently, businesses receive separate business rates bills for each non-domestic property they occupy, and large businesses with properties in different areas will receive bills from each of the local authorities responsible for issuing bills and collecting payment. While the Bill is a simple paving measure, it will allow HMRC to explore some potentially significant long-term changes to improve this system. To be clear, the Bill does not implement any specific reforms at this stage. It simply gives HMRC the powers to undertake the work and engagement to develop options for improving the system. It will ensure that any further changes meet the requirements of businesses.

I should stress that some noble Lords have written with inquires and points not particularly related to this legislation. I will ensure that they get a response, but this is a very simple piece of legislation relating just to paving the way to explore the possibility of digitalisation helping businesses along with HMRC and the tax system.

During the passage of the Bill in the other place, the point was made that digitalisation could reduce local authorities’ control over the business rates system. I therefore reassure noble Lords that the Government remain committed to giving local authorities greater control over the money they raise in their area and greater business rates retention. We aim to increase local government’s retention of business rates from 50% to 75% from 2020-21. As local government will retain more business rates, individual local authorities will also be able to keep a bigger share of growth in their own business rates. This will provide an incentive for all local authorities to grow their business rates bases. These commitments will be totally unaffected by the Bill. Local authorities will still be able to make local decisions about their local business rates, and the Government will, of course, engage with local government in the next phases of the design work on digitalisation.

The Bill is a first step towards creating a digital business rates system. It will enable HMRC to begin exploring potential options to link business rates with the administration of the wider tax system and expend resources in undertaking the initial development work. This is necessary as HMRC’s statutory functions do not currently include activity in connection with the administration of business rates. HMRC will also begin to undertake engagement with stakeholders to ensure that any reforms work for business and local government. The Bill will begin to meet the Budget 2016 commitment to transform business rates billing and collection. We cannot say what the final product will look like as this will be subject to that design work. Once complete, further primary legislation will be bought before this House for full scrutiny before the new system is bought in after 2024. It is therefore important to stress that this is paving legislation that provides power to explore the possibilities of a full digital system.

Following the passage of the Bill, the Government will begin development of a proposal for what this digital service might look like. This will involve engagement with stakeholders and the evaluation of possible options to ensure the best value for money. HMRC aims to develop a series of outline proposals in time for the spending review later this year. What will be taken forward will depend on the outcome of the spending review discussions. I assure noble Lords that there will be appropriate scrutiny and accountability in respect of this project. This is in addition to the role that Ministers in MHCLG and the Treasury will have, and it is also common for the Treasury Select Committee to examine large HMRC projects.

The Bill received cross-party support in the Commons, where it passed quickly without amendment. We want swiftly to grant HMRC the ability to begin early design work so that it can explore what a new system would look like, working with business and local government. I hope, therefore, that the Bill receives the same level of support in this House. It paves the way for an initiative to update business rates for the digital age. I commend it to the House and I beg to move.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, I thank noble Lords who have participated in this debate. I am most grateful for the support of the noble Lord, Lord Kennedy, the noble Baroness, Lady Pinnock, and the noble Earl, Lord Lytton. I understand the concerns that they have raised. I sought in my opening remarks to provide the reassurance that this is simply paving legislation to enable HMRC to explore options and to firm up a proposal that will then have to come back to us. Further legislation will be needed to implement the new digital system and it is perhaps then that the detailed scrutiny that we have been touching on will become appropriate.

I will ensure that the noble Earl gets a detailed response to the questions he has asked, both today and when he wrote to me. I had prepared answers, but when I first saw the speakers’ list I do not think he was on it, so I was reassured and did not prepare my speech on the basis of answering some of his questions. However, I will ensure that he gets a detailed response to his very good points.

I thank the noble Baroness, Lady Pinnock, for her support. To reiterate her point, this is enabling legislation. It is important that we involve all the stakeholders in looking at the possible options before we come back with the design that will then be voted on.

I thank the noble Lord, Lord Kennedy, very much. It is not often that I show that degree of prescience and foresight, but clearly something was working when I was developing the speech earlier. Again, I reassure him that we will ensure that a detailed proposal comes forward after being honed by HMRC. It is important not to put HMRC in the dock here; this is something that business has been asking us to look at because it wants to remove some of these administrative burdens. Businesses—representative as they are of individuals, as the noble Earl said—have asked us to do this. HMRC is responding to that call and we will look at its proposals in detail. I am most grateful for the comments made and I commend the Bill to the House.

Bill read a second time. Committee negatived. Standing Order 46 having been dispensed with, the Bill was read a third time and passed.

Ford in Bridgend

Lord Bourne of Aberystwyth Excerpts

Monday 10th June 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, with the leave of the House, I will repeat a Statement made in the other place by my right honourable friend the Secretary of State for Wales. The Statement is as follows:

“With your permission, Mr Speaker, I would like to make a Statement about the future of Ford’s engine plant in Bridgend, south Wales. On Thursday, Ford announced the start of a consultation with its unions concerning the potential closure of the Ford Bridgend engine plant in south Wales. I am not going to understate what a bitter blow this is to the 1,700 skilled and dedicated workers at Ford in Bridgend and their families, to the many more people and businesses who supply the plant and to the town of Bridgend and the wider community.

Our focus will be on working with Ford and the unions to understand the challenges and opportunities and gain the best outcomes. I have spoken to the company, unions and colleagues across the House. Colleagues at Jobcentre Plus are standing by to provide advice and support to those who require it in the local area, if required.

I live close by and absolutely understand the importance of this plant to the local community. The site has been worth over £3 billion to the local economy over the last 10 years. The town of Bridgend has proudly been home for 40 years to a world-class engine manufacturing facility. Ford has relied on Bridgend and Dagenham to supply fully one-third of its total engines worldwide, a fact of great pride.

We have known for some time that the production of the Sigma engine was coming to its natural end and that the Jaguar Land Rover contract would not be renewed, but the news that the Dragon engine may no longer be produced in the UK is disappointing. It is very disappointing that it could be taken out of UK—in fact, out of Europe—to be manufactured in Mexico. That underlines that this is not a decision about Brexit. This decision was about the challenging conditions faced right across the global automotive sector.

Bridgend has been particularly impacted by the downturn in Ford’s share of the passenger vehicle market in Europe, with volumes for the new Dragon engine falling significantly below installed capacity. Ford is restructuring its business across Europe significantly to decrease structural costs and allow for investment in future electrification. To that end, it is optimising its European manufacturing footprint and reducing operations in France, Germany and Spain.

Bridgend is significantly underutilised, with projections for the number of engines that it will produce falling far below what would be commercially viable in a single plant. Bridgend also faces a significant cost disadvantage compared with other Ford facilities around the world building the same engine. I have spoken to my right honourable friend the Business Secretary, colleagues in the Welsh Government, the trade unions and representatives since Ford’s announcement, and my honourable friend the Minister for Business and Industry and I have spoken to local Members of Parliament. Together, we will continue to engage with all stakeholders and elected representatives. While I know that the honourable Member for Bridgend cannot be in the Chamber today, I spoke with her on Friday.

We in the UK Government are committed to working with the Welsh Government and the local community to ensure that south Wales’s justified reputation as a place of industrial excellence in manufacturing and technology is maintained and expanded. On Thursday the Welsh Government’s Minister for Economy and Infrastructure announced the establishment of a task force to work with partners over the difficult weeks and months ahead to help find a sustainable long-term solution for the plant and its workforce. UK government departments and I will play a full and active part in that. This builds on an existing group that has been working jointly since it was confirmed that production of the Jaguar Land Rover engine would end in 2020, and it will be important that that also builds on the Honda task force, working together to support the automotive industry.

We are already looking at opportunities to attract new investment to the area. I remain optimistic that south Wales is an attractive proposition and place for industry to operate from. In fact, over the last two years I have been to Japan, China and the USA to promote the opportunities that Wales presents for the advanced manufacturing sector and our modern industrial strategy. Later this year Aston Martin will begin production of the DBX engine, which has created 750 jobs, and last September it announced a further £50 million that will make south Wales the home of its electric vehicle range.

I and many other colleagues across this House have worked hard over the last three years to make the case for investment in Britain to investors in this country and around the world. Despite the devastating news for south Wales operations, Ford’s commitment to the UK will remain, as a major employer of some 10,000 people, with other significant operations in the country, including Ford’s technical centre in Dunton, Essex, which is home to Ford’s European market-leading commercial vehicle business; Ford’s engine facility in Dagenham, east London, where it will continue to produce diesel engines; Ford’s mobility innovation office in London, where it will develop future mobility solutions for Europe; and the Halewood transmission plant, a joint venture between Ford and Getrag producing transmissions for cars such as the Ford Fiesta.

It remains the case that Ford, as an American company with a century-long history of operating successfully in the United Kingdom, undoubtedly recognises our international reputation for being a place to do business, with skilled and motivated staff, with access to innovation and strong determination to make those strengths even greater during the years ahead. That is the Government’s ambition, as is well-evidenced by the steps that we have most recently taken to build on the successes of our automotive sector deal. Our Advanced Propulsion Centre has awarded grants worth £800 million to more than 150 organisations across the United Kingdom. Just last month my honourable friend the Minister for Business and Industry announced a further £28 million of support to further enhance our UK Battery Industrialisation Centre in order to give an investment of over £100 million in a world-leading facility, enabling industry and academia to put the United Kingdom at the forefront of bringing battery technologies from the lab into the next generation of vehicles to drive our streets. Working with industry, £80 million of investment through our Driving the Electric Revolution programme will see support for innovation in electric motor technologies. We are determined to ensure that the United Kingdom continues to be one of the most competitive locations in the world for automotive and other advanced manufacturing.

While the announcement of this consultation by Ford is a disappointing blow, the Government’s bold mission to put the United Kingdom at the forefront of the design and manufacturing of zero-emission vehicles presents significant new opportunities for the United Kingdom. This includes new industries and ventures that will be well suited to the skills and expertise of those dedicated workers at Ford and its suppliers. I remain committed to ensuring that Bridgend and other parts of Wales benefit from this work. In this way, we will continue to work with the Welsh Government and our very many partners across the industry as we seize the opportunities for Britain to provide great jobs and careers for hundreds of thousands of people across our country during the years ahead. I commend this Statement to the House”.

My Lords, that concludes the Statement.

--- Later in debate ---

[Lord Fox (LD)]

My Lords, I draw attention to the interests in my name in the register and thank the Minister for repeating the Statement. I commend the noble Lord, Lord Griffiths, notwithstanding his optical challenges, for his very eloquent statement. I associate myself with almost everything he said; I will not attempt to repeat it, but the loss of the Ford Bridgend plant is huge. It is not just the 1,700 workers; it is the whole community—the subcontractors and the infrastructure that supports that factory. I agree with the GMB’s assessment that this is a disaster, not just for that area but for the UK car industry.

Following on from the final point of the noble Lord, Lord Griffiths, could the Minister tell us what talks Her Majesty’s Government had with Ford in the lead-up to this announcement? What help were they able to offer Ford, which in the end proved not to be enough? How far did the Government go to prevent this happening? They had fair warning. In April, Ford warned that it would reconsider its UK investments if MPs could not agree a Brexit deal that offers a smooth departure from the EU. This really points up that Brexit is absolutely a factor in this Statement, notwithstanding the point that the Secretary of State has made. It is also another dagger in the side of the industrial strategy.

For the avoidance of doubt, can the Minister update your Lordships’ House on how the Government are getting on with negotiating the smooth exit strategy that Ford and the rest of the car industry need? How many meetings have been had in Brussels since the extension of the exit date? How many times has the Prime Minister met with anybody in Brussels to bring forward a new proposal to Parliament? Indeed, when might Parliament expect a new proposal to deliver the smooth exit that business says it needs as a minimum level? The Minister may plead that this is above his pay grade—modestly, I would suggest—but this, above all issues, is front and centre in all the decisions that his department, BEIS and all the other departments in this country and Wales are dominated by. It must be dominating his waking hours. I hope he has an answer to the question: how are you getting on with the negotiations?

I thought that the situation was bad last term, but that stasis is nothing compared to what we are seeing now. The PM, as we know, has stepped down and the Government have gone into a sabbatical of self-immolation—if you want to see what setting fire to yourself looks like, just look at what Michael Gove managed over the weekend—while Britain’s advanced manufacturing is crying out for stability and direction. In the words of the SMMT’s chief executive:

“This ongoing uncertainty is corrosive, both on the operations … and on their reputation”.


That is another reason why Brexit is causing this to happen. The reason Ford pulled out is that it is losing confidence in the UK trading environment.

Of course, it is not just automotive. A recent paper from the Royal Economic Society finds that the confusion following Brexit has caused an output loss—a cut in GDP—of 1.7% to 2.5% up to the end of 2018. Today’s announcement of a drop in GDP of 0.4% in one month is a shocking reminder, but we should not be surprised. We were warned. In fact, the ERG’s favourite economist, Patrick Minford, explained some time ago that a no-deal Brexit would see manufacturers go the same way as the coal industry. That prediction is now being priced into every industrial and commercial decision made today, and it is the workers of Bridgend who are falling foul of that today.

In the FT, the Business Secretary is quoted as saying in this context that there are “grounds for optimism”. I am sure the Minister will agree with his colleague, because Ministers have to agree with Secretaries of State, so could he please answer just this one question, if none of the others. On this rainy day, what are the grounds for optimism for the workers of Ford Bridgend?

[Lord Bourne of Aberystwyth]

My Lords, first, I wish the noble Lord, Lord Griffiths, a speedy recovery from his cataract operation. It is very good to see him here at all, and he did an excellent job putting his case.

I shall try to answer the points made by the noble Lords, Lord Griffiths and Lord Fox, in the order in which they were made, if I may. First, there is a consultation here. I agree that this is serious—it is a devastating body blow, and there is no doubt of that—but we must appreciate that a consultation will be going on. Secondly, we know that the manufacture of the Dragon engine will continue until at least February next year, and the Jaguar Land Rover production still at the plant will continue until September next year. I am not making light of the issues, but it is important to get them in the proper context.

Both noble Lords touched on the task force. I think it is fair to say that the task force system was a creation of the Welsh Government. I was privileged to act as chairman of one in relation to a previous job problem—the closure of the Murco oil refinery in west Wales—and I can say with confidence that such task forces are very effective at bringing agencies together to talk about ways to mitigate problems. The first meeting of this task force will be within a week, and both Ken Skates from the Welsh Government and the Secretary of State, Alun Cairns, will be at that meeting, as will representatives of the unions. I understand that the consultation and discussions going on so far between the Secretary of State, the unions and Ken Skates have been very constructive.

It is very important that situations such as this do not become a political football. That is not to say that political points will not be made, but what is important for the people in Bridgend is that we act responsibly to seek new jobs, to find out what we can do to ensure that the highly skilled workforce there—including some excellently paid jobs in that town and the surrounding area of Ogmore and the south-west Wales valleys—is properly served by the work we do. I think that is the intention of all those involved.

On the point about Brexit, it is very important that we do not misrepresent what this is. I am not saying that there is not a discussion to be had on Brexit, and I will come to that, but it is very clear from what was said by Ford and from the context of the Statement, with significant job losses in Germany—5,000 being talked about—Spain and France, that this is not simply about Brexit, or it would just have been about jobs being lost in Britain.

That said, I accept—and noble Lords would do well to reflect on this—that Ford, Honda, Nissan and the Society of Motor Manufacturers and Traders have all called for support for a deal. Indeed, they have all called for support for the deal that has been voted down: the Prime Minister’s deal. I say to noble Lords that, yes, it is important that we get a deal, but there is a deal that these manufacturers have been urging support for which does not attract support from most Members of parties opposite. I make that point advisedly.

I accept that this is also an issue about the supply chain. That will be discussed in the context of the task force. The supply chain is also a factor with Honda. What has been offered in support for Honda’s supply chain will also be offered here. It is worth noting that the automotive sector deal, which is a significant part of the business strategy, has expended £16 million on supply chain assistance.

Noble Lords also need to see that the context of this is the move from diesel and petrol to electrification. The support we are giving to electrification—low-emission vehicles and infrastructure—is significant here. Thoughts about how we can develop that would really help the Welsh workforce, and indeed the British workforce, going forward.

[Lord Morris of Aberavon (Lab)]

My Lords, 40 years ago, as the Welsh Secretary, encouraged by Jim Callaghan, I provided the incentives for Ford to come to Bridgend, including, unconventionally, selling it the freehold in order to clinch the deal. The balance sheet over the years has been good jobs and good, planned industrial relations. Very little notice to Governments has been given of this calamitous decision. Will the Minister confirm that the usual yardstick of a total 4:1 loss in jobs can be expected, as happens in other industries? Secondly, can he assure me that stricter labour regulation and redundancy legislation in other countries, such as applies in Valencia, if the plant is still flourishing—I visited it as a Back-Bench MP—and Mexico have not affected this decision? Despite current denials, Brexit has loomed large over recent decisions in the whole of the automotive industry.

[Lord Bourne of Aberystwyth]

My Lords, first, I acknowledge the massive role that the noble and learned Lord, Lord Morris, had in the establishment of the Bridgend plant, very close to his former constituency of Aberavon. I agree with him that the supply chain is important. I have no specific figures on that, but it is not just the supply chain; the broader economy suffers in a situation such as this. The unemployment rate in Bridgend is very close to the national average—I think it is marginally above—but this is clearly an important situation.

I have no specific knowledge of redundancy legislation in Spain and Mexico, but I will write to the noble and learned Lord, if I may. As for trade union relations with Ford, Ford’s treatment of workers in previous job situations has been fair. I do not want to talk it up too much, but it has been fair. I know that that will be very much on the mind of the task force. I am also confident that the Secretary of State will want to talk to the noble and learned Lord about his experience of Ford, and I hope that he is available, as I am sure that that would be helpful going forward.

[Lord Howell of Guildford (Con)]

My Lords, this is obviously a miserable affair. The Statement mentioned China. Is it not a fact that the entire worldwide motor industry is now in a state of turmoil with the rise of Asia? China has not yet even begun its impact on world car markets, but it will be massive when it comes. On top of that, there are the changes in technology, with the move to electric vehicles. The war on diesel clearly has not helped and nor, frankly, has Brexit. Otherwise, why would the motor industry have cut its output in the past month by 24%? That is a devastating impact.

One understands all that, but is not the time coming when we should have a strategic overview on all those problems? We have had Honda, JLR, the Nissan problem with Renault and the question of their future production here. Now, we have Ford. We are not just talking about motor manufacture but every conceivable component of a vast industry employing 822,000 people in all. Surely the time has come for a really strategic insight into how this kind of transport will develop here and how we fit into the world of rising China, America and Latin America, all of which will be in the motor manufacturing business and the transport business on a colossal scale. We have not seen anything yet.

[Lord Bourne of Aberystwyth]

My Lords, I am grateful to my noble friend for the benefit of his experience on this issue. I very much agree that we are dealing with a global situation; this is not simply about Europe or Brexit. I accept that there are Brexit issues relating to the economy, but the far more important issue here is the move away from diesel and petrol towards low-emission vehicles and the growth of markets in China and India in particular.

On strategic responses to this issue, we have the automotive sector deal and we committed £250,000 to the Faraday challenge on battery storage, which is important. A couple of weeks ago, I had the great privilege of going round Northern Industrial Battery Services Ltd in Welshpool, which is significantly attached to what BEIS is doing and provides a useful glimpse into the future. We need to move towards battery storage and low-emission vehicles, which is a large part of why the automotive sector has seen this period of turbulence. That turbulence has not been limited to this country, of course: as I indicated, this is going on pan-Europe. I take seriously what the noble Lord, Lord Howell, says, but I assure him that we are very much there.

I should add that we are investing in infrastructure in the low-emission and electric sectors. I am sure that, like me, noble Lords have noticed a greater prevalence of battery-charging in our cities now.

[Lord Wigley (PC)]

My Lords, I really must challenge the Minister on the total non sequitur in the Statement that this decision is not about Brexit, as engines will come from Mexico. Is he not aware that, in January, a Ford executive—Bob Shanks—said that a no-deal Brexit would be,

“catastrophic for the UK auto industry and Ford’s manufacturing operations in the country. We will take whatever action is necessary to preserve the competitiveness of our European business”?

Is the Minister not aware that Ford executives made it clear to Welsh Government Ministers that the danger of a no-deal Brexit was a contributory factor in their decision to close the Bridgend engine plant? What discussions have the Government had, or will they have, with the Welsh Government to create an aid package that will persuade Ford to suspend its decision until it is known whether we are to suffer a disastrous no-deal Brexit outcome?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord knows that I have immense respect for him but, on the move to Mexico, I rely not on the Statement but on what Ford has said. It made it quite clear that this decision would have been taken independently of Brexit. That is not to say that Brexit is not an important issue for the economy, but that debate is different from the one on this particular decision. We would do well to listen to Ford.

The noble Lord makes a significant and fair point about aid packages and assistance, which I am sure the task force will begin to look at next week in its first meeting. In the meantime, consultation is ongoing so there is time to look at this issue, although I accept that there is a degree of urgency. That will be one of the early things that Ken Skates, as the Welsh Government Minister, and the Secretary of State will want to look at with the unions and others when the task force meets.

[Lord Steel of Aikwood (LD)]

My Lords, I draw attention to my interests in the register as the president of the Jaguar Drivers’ Club in Britain. Ford is simply joining the queue after Jaguar Land Rover and Honda in closing plants. Although the Minister is absolutely right to emphasise that the transfer to electric technology is causing this issue—we do not deny that—the number of motor vehicles produced in this country has fallen by 45% in one year. That is horrific. Uncertainty over our future trading relationship with the rest of our big market in Europe is causing this issue. These companies are all internationally owned but no international investor will consider the major investment in new technologies that we need as long as this uncertainty exists. The Minister needs to take that message back to his colleagues.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, I can be led only by what the companies concerned are saying in relation to potential job losses, which is that this decision would have been taken regardless of Brexit. The noble Lord says that the economy in general is not benefiting from the Brexit uncertainty—indeed, that it is being harmed. He is absolutely right. I do not think that there is any doubt of that. As I said in answer to an earlier question, Ford, Nissan and Honda have all said that we need a deal; they have also said that people should support the deal that was put forward—a point I have already made. We must be realistic about this particular decision. The appropriate response to secure jobs should include investment, pushing the low-emissions sector in the automotive sector deal—as we are doing—and ensuring that we support battery storage and so on.

[Lord Berkeley (Lab)]

My Lords, the noble Lord, Lord Wigley, quoted a senior Ford executive saying that Brexit was entirely to blame, but the Minister seemed to contradict that completely. Either one of two different Ford executives is lying or somebody has misunderstood something, because those statements are complete opposites. On closing Bridgend, which is a terribly sad occasion, has Ford indicated whether it will move electric car production there instead, or will that go to the rest of Europe, which Brexit is not affecting?

[Lord Bourne of Aberystwyth]

My Lords, I am not sure that the noble Lord was here to hear the Statement.

[Lord Shipley (LD)]

My Lords, the Minister has made a number of comments about a no-deal Brexit. Is he aware of an Oxford University study published in April predicting that the UK car industry could shrink by almost half by the mid-2020s in a no-deal Brexit? If so, does he agree that the election of a Conservative leader and Prime Minister who promotes no deal is not in the interests of the British car industry?

[Lord Bourne of Aberystwyth]

My Lords, fascinated as I am by the ongoing leadership election, I do not have any role in it—not until it comes to the membership, at least—so I will not give any commentary on it. However, I agree with the noble Lord about the need for certainty in the economy; he is absolutely right about that. I also agree that a no-deal Brexit is not in the interests of the British economy. The vast majority of candidates accept that and are working towards a deal, which is desirable. If we are talking about the wider economy, however, we come back to the fundamental point on the delivery of Brexit: that there was a vote and that the vote cannot be ignored. To come back to the point about helping the highly qualified, highly skilled, well-paid workforce at Bridgend, we will do the best we can for them by seeking fresh investment and ensuring that the possibilities touched on by the noble Lord are there to service not just Europe but the rest of the world with electric vehicles.

[Lord Roberts of Llandudno (LD)]

My Lords, the Minister will be aware of the anxiety over the future of Airbus. Of course, Airbus is based in north, not south, Wales but it could lose 7,000 employees and 400 apprentices could lose the opportunity of an occupation. The supply chain could also suffer. This is because the Government insist on going ahead with Brexit without a fair deal or any deal at all. Why on earth do the Government not realise that their actions could decimate the workforce in Wales again, not only in Airbus but in the agricultural industry? I hope that the Government will look at Bridgend and at least say, “Yes, Brexit is partly responsible. Let us now halt this insanity of withdrawing from Europe”.

[Lord Bourne of Aberystwyth]

My Lords, I understand some Members’ desire to make this about Brexit but it is important that we focus on the job in hand, as I said. The noble Lord knows that I have immense respect for him, but we do not want to be in the position of talking down the excellent production of and workforce at Airbus. There really is no call for that. We should focus on helping the workforce at Bridgend.

[Lord Stoneham of Droxford (LD)]

My Lords, as someone who worked in the motor industry early in his career, I know that although the executives in the industry are cautious about what they say, they need Brexit like a hole in the head, whether it is with a deal or no deal. That is because there is a seven-year investment cycle in the industry. It is not about what is happening in the short term but about what is going to happen as each production line comes up for investment, as is now the case in Bridgend. The whole industry risks being destroyed by the uncertainty—not just on whether there is a deal in the next few months but over the next five years while we try to negotiate a deal going forward. That is the problem for the motor industry and surely that is why it is at risk.

[Lord Bourne of Aberystwyth]

My Lords, again it is important that we as politicians do not seek to interpret what executives in the car industry say. They are sufficiently strong to know their own minds and they are not backward about coming forward and telling Governments what they feel. If they say that this decision would have been made anyway and that it is not related to Brexit, we must take them at their word. It does not do any good at all to claim that this is about something that it is not. That is not to say, as I have now repeated many times, that uncertainty in the economy is a good thing; it is not and we all know that. That is why we need a Brexit deal and I hope that noble Lords will take that message back to their leaders so that we can come together and get a deal before the end of October.

[Lord Wigley]

My Lords, I hope that I can raise one more point. The Minister said that Brexit had played no part in this and that this position had been accepted by Welsh Government Ministers. Did he not hear Ken Skates AM yesterday morning on the radio making it perfectly clear that Ford had told him that a no-deal Brexit was a contributory factor in this decision?

[Lord Bourne of Aberystwyth]

My Lords, I have worked a great deal on the Welsh economy with Ken Skates. I did not have the privilege of hearing that interview but I did have the privilege of seeing what Ford had said in relation to the job losses. That is the point I was making.